5 comments:

Hi Toby,I won't be able to attend any meetings because I live in Spain but I would very much like you to air some of the suggestions I have made.

Here is yet another attempt to summarise what I am trying to say:

The Euro-Lite solution.

Greece must show Europe the solution to its problem by issuing the Drachma in a way that plays fair with the Euro.

Establish monetary sovereignty over Greece's internal affairs with the issue of the Drachma as a purely internal national currency and remain within the agreement to use the Euro as a shared and valued international currency.

This is a realistic solution. Reality may yet force it as the only solution. If it is anticipated and properly prepared for then it is a minimally disruptive and potentially prosperous solution.

Technical point: As an internal currency the Drachma does not have to be and should not be made legal tender. This is not necessary for a currency to circulate among its citizens, they will accept it out of patriotism and their own convenience. The Drachma as Legal tender would mean that it would be enforced as good for settling Euro debts. That would not be playing fair with the Euro and also would pervert the intend use of the Drachma to fund the internal economy – they would instead become a claim on our wealth held by others. Not giving a currency legal tender status confirms it as an internal currency because Its acceptance depends entirely on goodwill within the nation. This keeps it in legal harmony with the Euro and makes it very resilient to harmful speculation. It means that no claim of wealth in return for Drachmas can be enforced, if it stinks then goodwill may not be forthcoming – not a popular position for predatory speculators.

Unfortunately Spain has just elected a right wing government, more by default than anything else. They are not exactly neo liberal aligned, having their roots more in Franco era nostalgia, but I cannot see them introducing a socially progressive national monetary system.

For Spain I have another idea. If the government will not issue money to fund public services then set up a cooperative to do it. A wedding of the aspirations and energy of the 15M/Idignados movement with Spains strong cooperative tradition could produce:

The First Emergency National Cooperative of Spain

Purpose: To mobilise labour in service of the common wealth whenever and wherever government is unable to perform this function according to public aspiration.

Funding: Labour and materials will be rewarded by issue of receipts of contribution. The public will be asked to respect this contribution and accept the receipts in exchange for the goods and services they have to offer and then use those receipts to purchase the goods and services they require. This autonomous funding system that encourages the use of its receipts for the trading of goods and services is designed spread the burden of contribution as widely as possible with the added benefit of enabling trade that might otherwise not be possible.